World's Largest Carpet Manufacturer Launches New China Factory with Two-Tier ERP

Shaw Industries

"Because NetSuite is in the cloud, we can enter new markets faster. We're very confident NetSuite will seamlessly support our growth outside North America." Shaw Industries

Company at a Glance

Location:
Dalton, Ga.
Industry:
Manufacturing/Distribution
Applications Replaced:
None; new rollout for international operations

Solutions

NetSuite OneWorld
NetSuite Manufacturing
Advanced Inventory

Customer Success:

  • A Berkshire Hathaway subsidiary, Shaw Industries turned to NetSuite for its launch of a new 210,000-square-foot manufacturing plant in Nantong, China to produce carpet tile for Asian markets.
  • NetSuite OneWorld gives Shaw visibility and control over the China plant and 10 international subsidiaries in countries including China, India, Luxembourg, Hong Kong, Singapore and Australia.
  • In a two-tier ERP model, Shaw links OneWorld for international operations to on-premise Oracle and custom-developed systems at its headquarters in Dalton, Georgia.
  • With NetSuite’s cloud solution, the world's largest carpet manufacturer saved significant time and capital expense vs. the alternative of on-premise ERP for international operations.
  • Shaw easily rolls up subsidiary financials with global financial consolidation, while gaining on-demand transparency into international operations.
  • Multi-currency capabilities in OneWorld enable Shaw to seamlessly transact in the Chinese renminbi and Australian dollar.
  • NetSuite support for the Mandarin language allows Shaw to extend the solution for use by Mandarin Chinese speakers across the manufacturing plant.
  • Shaw streamlines production in China with NetSuite manufacturing capabilities including work orders; work in process, lot control and standard costing.
  • NetSuite Advanced Inventory supports multi-location warehousing and distribution of commercial carpet tile to customers in China and across Asia.

Challenges:

  • Shaw Industries needed an ERP solution that could scale across a complex global environment with a lean IT footprint, low capital expense and swift deployment.
  • The $4.5 billion company wanted a solution that also supported the Mandarin language and multi-currency conversion and featured manufacturing capabilities.
  • With its China plant, Shaw sought to reduce by several weeks the time required to deliver product to Asian markets, vs. shipping U.S.-made carpet tile overseas.

Solution:

  • NetSuite selected as a critical element of Shaw's strategy for global growth by producing carpet tile for Asian markets from its China factory.
  • Due diligence and evaluation of leading ERP applications led Shaw to conclude that NetSuite OneWorld was best suited for its international initiatives.
  • NetSuite's repeatable deployment model positions Shaw to quickly equip new global subsidiaries with ERP as international business grows.